"Her name means 'daughter of Mirkwood' and, beyond that, we must leave you guessing! (No, there is no romantic connection to Legolas.) What is not a secret is how talented and compelling an actress Evangeline is," Jackson raved. "We are thrilled and excited she will be the one to bring our first true Sylvan Elf to life."

The exciting news comes less than a month after Lilly welcomed her first child, a boy, with boyfriend Norman Kali.

Jackson also announced that actor BarryHumphries, 77, will play the Goblin King. He and Lilly join OrlandoBloom, 34, Elijah Wood, 30, Sir IanMcKellan, 72, Cate Blanchett, 42, ChristopherLee, 89, Hugo Weaving, 51, and AndySerkis, 47, who are all reprising their Lord of the Rings characters in the prequel.

The first of the two films, The Hobbit: An Unexpected Journey, hits theaters December 14, 2012. The second installment, The Hobbit: There and Back Again, will be filmed back-to-back with the first; it will arrive in theaters December 13, 2013.